EU Blue Card: a Promising Tool Among Labour Migration Policies? a Comparative Analysis of Selected Countries
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A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Bellini, Simona Working Paper EU Blue Card: A promising tool among labour migration policies? A comparative analysis of selected countries Working Paper, No. 76/2016 Provided in Cooperation with: Berlin Institute for International Political Economy (IPE) Suggested Citation: Bellini, Simona (2016) : EU Blue Card: A promising tool among labour migration policies? A comparative analysis of selected countries, Working Paper, No. 76/2016, Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE), Berlin This Version is available at: http://hdl.handle.net/10419/148414 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. 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A comparative analysis of selected countries Simona Bellini Berlin School of Economics and Law Abstract In 2007 the Commission proposed a Directive aimed exclusively at third-country nationals moving to Europe for the purpose of highly qualified employment that would set up a harmonized entry procedure, lay down common residence conditions and facilitate mobility through Europe. The Directive, named Blue Card, was meant to make Europe more attractive for highly qualified migrants by offering a fast-track entry procedure and social benefits in the EU. The Commission, despite the reluctance of Member States, managed to push through the Directive, which was finally approved in 2009. In the first three years since the Blue Card first entered into force in the majority of Member States in 2012, no more than 30,352 cards have been issued, of which about 26,200 by a single Member State. Why? Through a detailed analysis of the conditions set by the Directive and their comparison with the ones posed by the national labour migration schemes - in particular in Germany, Sweden and the Netherlands -, this paper aims to demonstrate that the causes of failure are not to search in the Blue Card instrument per se , but rather in the ways this has been implemented in the single Member States. Keywords: European Blue Card, labour migration, third-country migrants, labour shortage, high-skilled migrants, European economic competitiveness, free movement of labour, harmonization, knowledge economy, reallocation of workers, single market, sovereignty, shared competences. JEL code: K37, J20, J23, J31, J61, J88 Contact: [email protected] Acknowledgments: My gratitude goes to Prof. Martin Kronauer of the Berlin School of Economics and Law for his valuable guidance and his constructive criticism throughout my work. I am grateful and indebted to Dr. Mechthild Baumann of the European Academy Berlin for suggesting the initial ideas necessary to move the first steps in my study. 1 1. Introduction Labour migration has become inevitable in a European Union without frontiers. The free movement of workers is not only necessary but also essential in an open economy in order to guarantee a better allocation of resources within the EU, which is of paramount importance in a European context of population ageing and birth rates declining. The free movement of labour is one of the fundamental freedoms granted to European citizens: Europe needs to expand this right to third-country migrants legally working in one Member State if it wants, on the one hand, to increase its attractiveness with respect to highly qualified migrants and on the other hand, to be a promoter of equality of rights, as enshrined in the Treaty and the Charter. A Commission proposal in 2007 was intended to pursue these aims by creating a level-playing field at the EU level to facilitate and harmonize the admission of highly qualified third-country nationals and by promoting their efficient (re-)allocation on the EU labour market. The Blue Card proposal was exclusively aimed at third-country nationals with high qualifications already in possession of a job contract for a highly skilled and highly payed profession by a European employer. The scheme is based on the rationale that the EU is stronger when it works together and that an EU-wide single labour market would make the EU more attractive instead of 28 separate labour markets; however, European institutions’ ambitions to create harmonized and coherent labour migration policies in order to increase the EU’s appeal to skilled third-country nationals came up against Member States’ reluctance to cede responsibility for labour market access regulation. The Blue Card is kind of a puzzle: while challenges facing Member States in terms of labour shortages and ageing population are similar, their response to a harmonized highly skilled immigration policy varies considerably. Their national self-interests and their reluctance to cede sovereignty on migration matters, coupled with their fear of an overwhelming wave of (low-skilled) migrants flowing into Europe, led to an almost insignificant European migration scheme to attract highly skilled migrants that represents the limit to further integration: instead of representing a signal to highly skilled migrants and a factor of competition for the EU, the Blue Card demonstrates the difficulties to greater integration and the reluctance of Member States to cede more responsibility to the EU level. Light will be shed on these matters by firstly assessing the enthusiasm of the Commission in its struggle to push the Blue Card proposal through, the reasons for the low support on the part of national governments and the surprising final approval for a considerably watered-down version of what should have been a European-wide harmonized approach to labour migration. The main body of this study is concerned with a comparative analysis of the European Directive weighed against the national approaches to third-country labour migration of three sample Member States, looking notably at the number of national permits and Blue Cards granted, entry conditions and rights granted by each scheme. 2 2. Motives behind the Commission proposal The main arguments in favour of such a scheme are of different types: a business argument, since there is need for highly skilled migrants to fill in the shortages experienced in Europe; a demographic argument, since the ageing population would make it difficult to sustain economic growth in Europe; a competition argument, since European countries are lagging behind most other OECD countries when it comes to attracting highly skilled migrants; and an inclusion argument, since Europe needed to build a more dynamic knowledge-based economy and contribute to an inclusive economic growth in the run up to 2020, as stated in the Lisbon Strategy. a. The business argument The business argument was sustained by the lack of skills, competencies and knowledge experienced in many Member States that cannot be provided by the domestic workforce in the short run, nor generated quickly enough since changes in the domestic education and training system operate on long timescales (Migrationsverket /EMN 2013: 9). “Although immigration can make an important contribution to labour force growth, its role in counterbalancing the effects of population ageing will depend on the capacity of countries to match labour needs to migrants’ characteristics. In this regard, more needs to be done to better use migrants’ skills and to adapt labour migration management systems to employers’ needs” (OECD/EU 2014: 15). Labour migration is the only area where policies can have a direct influence on the composition of migrant flows by selecting migrants based on educational level. Although the privilege was given to highly qualified workers, it was acknowledged that the needs of the EU market covered “all levels of skills and qualifications” (EC 2007e: 8) and that the proposed instrument targeted at this single category should be “part of a comprehensive package of measures addressing different areas of action” ( ibid ). b. The demographic argument As for the second reason mentioned, the Commission recognized in its proposal for the Blue Card that the size of the working age population “will decrease by 48 million by 2050 and